Meeting the United Kingdom’s net-zero targets may require up to £75 billion of investment in long-duration energy storage (LDES) by 2050, according to a roadmap published by the Transition Finance Council.
The report underscores the growing role of LDES in balancing increasingly variable renewable power, supporting grid stability, and enabling emerging technologies such as artificial intelligence.
Long-duration energy storage refers to systems capable of delivering electricity for eight hours or more, including large-scale battery arrays and pumped-hydro installations. The council estimates that £10 billion to £15 billion of investment will be needed by 2030, with an additional £30 billion to £60 billion required through 2050 to scale deployment and integrate storage effectively into the national grid.
Scaling LDES is expected to deliver multiple system-level benefits. By storing surplus renewable generation during periods of low demand, these technologies can reduce electricity system costs, relieve grid congestion, and lower consumer bills. The council also highlights economic opportunities, projecting that deployment could create jobs in regions that have historically been left behind by energy transition investments.
The roadmap emphasizes that private capital will be critical to meeting these targets, calling for coordinated action from government, regulators, and industry to improve investment certainty. Recommendations include establishing revenue parity or minimum revenue guarantees for LDES projects to enhance bankability, alongside continued investment by the National Wealth Fund and expanded use of concessionary and catalytic capital.
Lord Alok Sharma, chair of the Transition Finance Council, emphasized that LDES is central to the UK’s energy transition. He stated that developing storage at scale will enhance energy security, insulate the economy from supply shocks, and contribute to lower electricity costs.
Chris Skidmore, chair of the council’s pathways, policies, and governance working group, described LDES as “the key that can unlock the true potential of the clean energy revolution in the UK,” highlighting its ability to integrate renewable energy fully into the system. Irem Yerdelen, lead member for sustainable finance at the City Corporation, added that smart financing structures are essential to building investor confidence and achieving large-scale deployment of these emerging technologies.
